Correlation Between Broadridge Financial and Globus Maritime

Can any of the company-specific risk be diversified away by investing in both Broadridge Financial and Globus Maritime at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Broadridge Financial and Globus Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Broadridge Financial Solutions and Globus Maritime, you can compare the effects of market volatilities on Broadridge Financial and Globus Maritime and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Broadridge Financial with a short position of Globus Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broadridge Financial and Globus Maritime.

Diversification Opportunities for Broadridge Financial and Globus Maritime

0.28

Correlation Coefficient

Broadridge Financial  Globus Maritime

Modest diversification

The 3 months correlation between Broadridge and Globus is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Broadridge Financial Solutions and Globus Maritime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globus Maritime and Broadridge Financial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Broadridge Financial Solutions are associated (or correlated) with Globus Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globus Maritime has no effect on the direction of Broadridge Financial i.e., Broadridge Financial and Globus Maritime go up and down completely randomly.

Pair Corralation between Broadridge Financial and Globus Maritime

Allowing for the 90-day total investment horizon Broadridge Financial is expected to generate 1.23 times less return on investment than Globus Maritime. But when comparing it to its historical volatility, Broadridge Financial Solutions is 2.84 times less risky than Globus Maritime. It trades about 0.09 of its potential returns per unit of risk. Globus Maritime is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  116.00  in Globus Maritime on December 29, 2024 and sell it today you would earn a total of  5.00  from holding Globus Maritime or generate 4.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Broadridge Financial Solutions  vs.  Globus Maritime

Broadridge Financial

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Broadridge Financial Solutions are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Broadridge Financial is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Globus Maritime

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Globus Maritime are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental drivers, Globus Maritime may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Broadridge Financial and Globus Maritime

The main advantage of trading using opposite Broadridge Financial and Globus Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broadridge Financial position performs unexpectedly, Globus Maritime can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Globus Maritime will offset losses from the drop in Globus Maritime's long position.

The idea behind Broadridge Financial Solutions and Globus Maritime pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.